Pebblebrook Hotel Trust : Update on Recent Operating Trends

southernmost beach resort

Pebblebrook Update on Recent Operating Trends

January 2023

P EBBLEBROOK UP DA TE ON RECEN T OP ERA TI N G TREN DS

Forward-Looking Statements

This presentation contains forward-looking statements that are subject to risks and uncertainties. These forward-looking statements include information about preliminary, possible or assumed future results of Pebblebrook Hotel Trust's (the "Company") business, financial condition, liquidity, results of operations, plans and objectives. These forward-looking statements are based on the Company's beliefs, assumptions, estimates and expectations of future performance and actual, audited results, taking into account information currently available to the Company. These beliefs, assumptions, estimates and expectations can change as a result of many possible events or factors, not all of which are known to the Company. If a change occurs, the Company's business, prospects, financial condition, liquidity and results of operations may vary materially from these forward-looking statements. These risks and uncertainties include, but are not limited to, potential additional impairment charges relating to the remediation and restoration of storm damage to LaPlaya Beach Club & Resort, the state of the U.S. economy, supply and demand in the hotel industry and other factors as are described in greater detail in the Company's filings with the Securities and Exchange Commission, including, without limitation, the Company's Annual Report on Form 10-K for the year ended December 31, 2021. You should carefully consider these risks when you make an investment decision concerning the Company's securities. You are cautioned not to place undue reliance on any forward-looking statements. The Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

This presentation does not constitute, and may not be used in connection with, an offer or solicitation by anyone.

The Company assumes no obligation to update or revise any of the information in this document.

The following presentation includes financial projections and forward-looking statements. These projections and forward-looking statements are based on assumptions and estimates developed by the Company and actual results may vary from the projections and such variations may be material. This presentation includes estimates and the Company makes no representation as to the accuracy of these estimates. Additionally, this presentation should not be relied upon or regarded as a representation by the Company, management or its employees that the forward-looking statements, or beliefs, assumptions, estimates or expectations of future performance underlying them, will be achieved.

Investor Inquiries:

Raymond D. Martz

Chief Financial Officer

1. [e-mail]

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montrose west hollywood

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P EBBLEBROOK UP DA TE ON RECEN T OP ERA TI N G TREN DS

Updates on Portfolio and Operating Trends

• December performed slightly better than November, with Same-Property Total Revenue down 8% and RevPAR down 11% to December 2019. ADR increased a very robust 25% in December. Winter storms at the end of December negatively impacted our results due to significant airline disruptions and cancellations, reducing Room Revenue by approximately $1.4 million, Total Revenue by approximately $1.8 million, and Hotel EBITDA by approximately $1.2 million.
• The Company continues to make significant progress completing major repairs and rebuilding work at the
  189-room LaPlaya Beach Resort & Club ("LaPlaya") in Naples, Florida. Portions of the resort and guestrooms are still targeted to be restored and reopened in stages beginning later in Q1 2023. However, many issues remain outside of our control that could delay this reopening. For example, permanent power for much of the resort is still not fully restored. The resort is currently expected to be fully remediated and restored by mid-year this year.
• The Company has executed a contract to sell The Heathman Hotel in Portland, Oregon for $45.0 million to a third party. The sale of The Heathman Hotel is subject to normal closing conditions, and the Company offers no assurances that this sale will be completed on these terms. The sale is targeted to be completed later in the first quarter of 2023.

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P EBBLEBROOK UP DA TE ON RECEN T OP ERA TI N G TREN DS

Preliminary Q4 2022 & 2022 Results

• Preliminary Q4 hotel operating results are expected to be largely in line with the revised outlook issued on December 20, 2022. The range shown for preliminary Q4 Adjusted EBTIDAre is expected to be at or slightly above the high end of our prior outlook. The range shown for preliminary Adjusted FFO/share is expected to exceed the prior outlook primarily due to savings in corporate G&A, interest, and preferred dividend payments.
• The range shown for preliminary Net Loss is expected to be larger than our prior outlook due to an impairment charge for a property held for sale and impairment charges relating to the remediation and restoration of LaPlaya. These charges related to LaPlaya are expected to be covered by the existing property insurance program after deductibles have been expensed. All of the impairment charges impact Net Loss but do not impact Adjusted EBITDAre and Adjusted FFO.

	Preliminary		Q4 2022				Preliminary	Full Year 2022
		Q4 2022		Outlook	Variance(2)	Full Year 2022		Outlook	Variance(2)
	Results(1)	as of 12/20/2022	Results(1)	as of 12/20/2022
	Low	High	Low	High	Low	High	Low	High	Low	High	Low	High
Net Loss	($41)	($39)	($40)	($36)	($1)	($3)		($87)	($85)	($85)	($81)	($2)	($4)
Adjusted EBITDAre	$56	$58	$52	$56	$4	$2		$355	$357	$351	$355	$4	$2
Adjusted FFO	$24	$26	$17	$21	$7	$5		$220	$222	$212	$216	$8	$6
Adjusted FFO per diluted share	$0.19	$0.20	$0.13	$0.16	$0.06	$0.04		$1.68	$1.69	$1.61	$1.64	$0.07	$0.05
Same Property RevPAR	$174	$174	$173	$175	$1	($1)		$193	$193	$193	$193	-	-
Same-Property RevPAR vs. 2019	(7.8%)	(7.8%)	(8.0%)	(7.0%)	0.2%	(0.8%)		(8.0%)	(8.0%)	(8.0%)	(7.75%)	-	(0.3%)
Same-Property RevPAR vs. 2021	25.6%	25.6%	25.2%	26.6%	0.4%	(1.0%)		67.0%	67.0%	67.2%	67.2%	(0.2%)	(0.2%)
Same-Property EBITDA	$63.2	$65.2	$61.0	$65.0	$2.2	$0.2		$389.0	$391.0	$386.8	$390.8	$2.2	$0.2
Same-Property EBITDA vs. 2019	(29.1%) (26.9%)	(31.6%)	(27.1%)	2.5%	0.2%		(16.0%)	(15.5%)	(16.4%)	(15.6%)	0.4%	0.1%

Note: Dollars in millions, except for ADR, RevPAR and Adjusted FFO per Diluted Share.
(1)	See the Company's press release dated January 20, 2023 for reconciliations of non-GAAP financial measures to Net Income and details as to which hotels are included in Same-Property	4
	RevPAR and EBITDA.
(2)	Any differences are a result of rounding.

P EBBLEBROOK UP DA TE ON RECEN T OP ERA TI N G TREN DS

Recent Operating Trends

• For Q4, the Same-Property portfolio significantly outperformed Q4 2021 with RevPAR increasing 26%, Total
  Revenue increasing 28%, and Hotel EBITDA increasing 23%. The Company's urban hotels drove this increase.
  Business travel, both group and transient, continued to recover, the primary source of improving demand and occupancy.
• Compared to Q4 2019, for the Same-Property Portfolio, Q4 2022 RevPAR was down 8%, Total Revenue was off 6%, and Hotel EBITDA was approximately 27% lower. ADR was 18% higher than in Q4 2019.
• The Company experienced softer weekday demand in mid-December before the Christmas holiday. Year-end holiday travel remained strong, though it was significantly disrupted by severe winter storms across the country.
  The Company's Q4 results exclude LaPlaya, which has been closed since late September due to Hurricane Ian.

						Variance to 2019
2022 Same-	Occ	ADR	RevPAR	Total	Hotel	Total	RevPAR
Property Portfolio(1)	Revenue	EBITDA	Revenue
January	34%	$269	$91	$57.0	($3.1)	(44%)	(44%)
February	50%	$308	$153	$84.9	$20.5	(21%)	(20%)
March	62%	$305	$188	$116.2	$38.8	(9%)	(10%)
Q1 2022	48%	$297	$144	$258.0	$56.2	(23%)	(23%)
April	68%	$319	$218	$128.3	$46.6	(3%)	(4%)
May	67%	$314	$210	$129.4	$42.9	(6%)	(8%)
June	73%	$323	$236	$138.1	$49.3	(1%)	(3%)		hotel zoe fisherman's wharf
Q2 2022	69%	$319	$221	$395.7	$138.8	(3%)	(5%)
July	74%	$334	$246	$142.3	$50.4	4%	3%
August	71%	$309	$219	$128.2	$37.4	(2%)	(3%)
September	73%	$318	$234	$133.4	$43.0	5%	5%
Q3 2022	73%	$321	$233	$403.9	$130.9	2%	1%
October(F)(2)	73%	$310	$226	$131.6	$41.2	(1%)	(3%)
November(F)(2)	59%	$280	$166	$95.5	$17.4	(10%)	(12%)
December(F)(2)	48%	$267	$129	$83.5	$6.7	(8%)	(11%)
Q4 2022(F)(2)	60%	$289	$174	$310.6	$65.2	(6%)	(8%)
Full Year(F)(2)	63%	$308	$193	$1,368.3	$391.0	(7%)	(8%)		le parc suite hotel

Note: Dollars in millions, except for ADR and RevPAR.

1. Includes information for all of the hotels the Company owned as of December 31, 2022, except 1 Hotel San Francisco (which is excluded from January-December given the property's closure for renovation), Inn on Fifth (which is excluded from January-March given the property's acquisition on May 11), and Newport Harbor Island Resort (which is excluded from January-June given the property's acquisition on June 23). Additionally, following their sales, The Marker San Francisco is excluded from April-December, Sofitel Philadelphia at Rittenhouse Square Hotel is excluded

from July-December, Hotel Spero is excluded from July-December, and Vintage Portland is excluded from July-December. LaPlaya Beach Resort & Club is excluded from October-December	5
given the property's closure due to Hurricane Ian.
(2) Information presented is preliminary and remains subject to change.